Upticks: Million Dollar Mistake, I Bonds, Lottery Thoughts, Mood Stocks, and Cutting 2024 Taxes
By Jake Falcon on November 7, 2024
On this episode of Upticks, Jake and Cory discuss the Kansas City Chiefs’ potential for an undefeated season and share a cautionary tale about a million-dollar mistake. They revisit the hype around I-Bonds from 2022 and provide thoughts on what to do with them now.
Jake and Cory also emphasize scrutinizing retirement expenses, reveal a surprising link between mood and stock prices, and offer essential tax tips for 2024. Finally, they explore the psychology behind rising lottery ticket prices. Tune in for practical financial insights and engaging discussions!
Thank you for joining us this week! If you have a topic that you would like Jake and Cory to discuss or debate live on Upticks, please email it directly to me at luke@falconwealthadvisors.com and I’ll be sure to ask them to bring it up on the show!
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Read a summary of the conversation below:
Chiefs: Can They Go Undefeated?
Jake and Cory kick off the episode with a spirited discussion about the Kansas City Chiefs’ impressive 8-0 start to the season. Jake is optimistic, predicting an undefeated season and a Super Bowl win, while Cory remains skeptical, acknowledging the difficulty of such a feat.
Million Dollar Mistake
Cory shares a cautionary tale about a prospective client who made a costly financial error by moving their 401(k) into cash during a market downturn and leaving it there. This mistake, driven by fear and uncertainty, highlights the importance of financial. Jake and Cory emphasize that there’s no shame in making mistakes and encourage listeners to seek help to avoid similar pitfalls. They discuss how emotions can often lead to poor financial decisions and the importance of having a solid financial plan and professional guidance to navigate turbulent times.
You Bought Blockbuster I-Bonds. Here’s What to Do with Them Now
Remember the hype around I-Bonds in 2022? Jake and Cory revisit this topic, explaining that while these bonds offered attractive rates during high inflation, their returns have since dropped. They suggest listeners to review their I-Bonds and consider cashing them in or exploring other investment options, especially if the current yields no longer meet their financial goals. The hosts break down the mechanics of I-Bonds, including the fixed and variable rates, and ways to manage these investments in the current economic climate.
In Retirement, It’s Time to Put Our Costs Under the Microscope
The hosts discuss an article from the Wall Street Journal about a retired couple who meticulously reviewed their expenses to eliminate unnecessary costs. From subscription services to unused vehicles, they scrutinized every expense. Jake and Cory stress the importance of financial vigilance, especially in retirement, and suggest tackling one expense category at a time to make the process manageable. They share personal anecdotes and practical tips on how to identify and cut out “parasites”—recurring costs that provide little value but can drain your finances over time.
The Surprising Link Between Your Mood and Your Stocks
An intriguing study reveals that antidepressant prescriptions increase when local stock prices drop. Jake and Cory delve into the psychological impact of market fluctuations on investors, underscoring the need for a diversified portfolio and a solid financial plan to mitigate stress and anxiety related to market volatility. They discuss the importance of maintaining perspective during market downturns and how a well-diversified portfolio can help cushion the emotional and financial blow of stock market declines.
Cut Your 2024 Taxes Before It’s Too Late
With the end of the year approaching, Jake and Cory remind listeners that now is the time to plan for 2024 taxes. They highlight key actions such as checking withholding and estimated tax payments, understanding new rules for inherited IRAs, and taking advantage of energy-efficient home improvement tax credits. Proactive tax planning can potentially save you money and reduce stress as the new year approaches.
It Takes a Billion Dollars to Sell a Lottery Ticket
Finally, the hosts discuss the rising cost of lottery tickets and the psychology behind massive jackpots. With the price of Mega Millions tickets increasing from $2 to $5, they explore how larger jackpots drive more ticket sales, likening it to a drug where people need bigger prizes to get excited. They caution against spending excessively on lottery tickets, especially for those with tight budgets. Jake and Cory reflect on the allure of the lottery and the potential financial pitfalls of chasing big wins, offering a balanced view on the topic.
Thank you for tuning in, we hope you have a great week!
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